Following its separation from Xbox Game Studios, Compulsion Games is actively seeking new collaborative partnerships as it pursues an independent future. However, creative director David Sears has suggested that the studio's next venture may differ significantly from their recent title, South of Midnight, revealing doubts about the business logic behind its original funding.
In a recent interview with MinnMax's Ben Hanson, Sears discussed Microsoft's strategy of backing projects like South of Midnight and Double Fine's Keeper. He noted that both Xbox and the developers understood these titles were unlikely to generate substantial revenue but were intended to boost prestige or serve as cultural cornerstones. Despite this shared understanding, Sears warned during development that someone would eventually close the "money tap," predicting traumatic downstream consequences for the industry.
When asked if he would have funded South of Midnight himself given the circumstances, Sears replied affirmatively that he probably would not. He clarified that while his desire to make the game was undeniable, he is not entirely selfless and recognized the financial unsustainability of the model in hindsight. Sears recalled conversations with other directors who viewed the era as a "golden age" of luck, whereas he remained concerned that such support could not last indefinitely, likening the situation to the eventual burning of Rome.
Sears concluded by observing that modern Microsoft appears more humane than its 1990s counterpart, evidenced by its decision to allow studios like Compulsion to spin off with their intellectual property rather than shutting them down completely. Compulsion Games, known for We Happy Few and the award-winning South of Midnight released in 2025, was acquired by Microsoft prior to the latter's launch. As part of Xbox's recent restructuring, the studio departed with all its IP and an undisclosed financial runway, though it remains unclear if a new project has been signed.
Sources: Kotaku.